The near two-hour long film shows the hitmaker as a 15-year-old boy playing the character of Roger, aka Rump, in his school production of the musical Grease.
The DVD is being sold by Omega Auctions, which shared a snippet of the video ahead of the sale that will take place on 29 June.
In it, Sheeran can be seen sporting a slicked-back Fifties hairstyle and a leather jacket while putting on an American accent.
The clip also shows the “Shape of You” musician singing “Summer Nights” together with the T-Birds.
Another moment sees Sheeran take on a solo performance of the original musical’s lesser-known song “Mooning”, in which Rump explains the origins of his nickname.
Auctioneer Paul Fairweather said of the forthcoming sale: “Over the last year or so we’ve seen an exponential increase in interest for memorabilia and collectables relating to contemporary artists, especially Ed Sheeran.
“We sold a rare early CD title for £50,000 in September of last year and since then the enquiries and consignments have been non-stop.”
Speaking about the video, Fairweather said that it is “a great watch and we think it definitely gives a hint as to Ed’s star potential”.
Last week, the Grammy Award-winner gave fans a highly anticipated update on his new music.
The 30-year-old revealed that his first solo single in four years would be available in the “next few weeks”.
Join our new commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies